Hydrogen Guideline

Department of Planning and Environment
dpie.nsw.gov.au
Hydrogen
Guideline
A guide to the NSW planning system
March 2023
Hydrogen Guideline | Hydrogen Guidelinea

Acknowledgement of
Country
The Department of Planning and Environment acknowledges that it
stands on Aboriginal land. We acknowledge the Traditional Custodians
of the land and we show our respect for Elders past, present and
emerging through thoughtful and collaborative approaches to our work,
seeking to demonstrate our ongoing commitment to providing places in
which Aboriginal people are included socially, culturally and
economically.
Published by NSW Department of Planning and Environment

dpie.nsw.gov.au
Hydrogen Guideline
A guide to the NSW planning system
First published: March 2023
Copyright and disclaimer
© State of New South Wales through Department of Planning and
Environment 2022. Information contained in this publication is based on
knowledge and understanding at the time of writing, March 2023, and is
subject to change. For more information, please visit
dpie.nsw.gov.au/copyright
TMP-MC-R-DC-V1.2
Hydrogen Guideline | 2
Contents
Glossary ....................................................................................................................................................... 4
Abbreviations .............................................................................................................................................. 5
1 Introduction ...................................................................................................................................... 6
1.1 Purpose and objectives .................................................................................................................................................. 6
1.2 Application of the guideline ........................................................................................................................................ 7
2 About hydrogen ............................................................................................................................... 7
2.1 How hydrogen is used .................................................................................................................................................... 7
2.2 Hydrogen hubs, ports and special activation precincts ................................................................................. 8
2.3 Hazards and risks of hydrogen development...................................................................................................... 8
3 NSW planning framework .............................................................................................................10
3.1 Characterising development ...................................................................................................................................... 11
3.2 Permissibility .................................................................................................................................................................... 14
3.3 Planning pathways......................................................................................................................................................... 16
3.4 Environmental impact assessment ........................................................................................................................ 21
4 Key assessment issues .................................................................................................................. 21
4.1 Hazards and risks ........................................................................................................................................................... 21
4.2 Site selection ................................................................................................................................................................... 22
4.3 Cumulative impacts ...................................................................................................................................................... 23
4.4 Other assessment issues ........................................................................................................................................... 23
Appendix A: Land use definitions ........................................................................................................... 25
Glossary
Applicant The applicant for development consent or any person who may be carrying out
development pursuant to a consent granted under Part 4 of the EP&A Act
Approval Approval granted by a determining authority under Part 5 of the EP&A Act
Characterisation The identification of various components of a development for the purposes of

determining permissibility
Consent Development consent granted under Part 4 of the EP&A Act
Consent authority The consent authority for a development application
Department The NSW Department of Planning and Environment
Development An application for consent under Part 4 of the EP&A Act to carry out a development
application (excluding an application for a complying development certificate)
Proponent The person proposing to carry out an activity under Part 5 of the EP&A Act
Regionally significant Development that is declared to be Regionally significant development in

development accordance with section 2.19 and schedule 6 of the State Environmental Planning
Policy (Planning Systems) 2021.
State significant Development that is declared to be State significant development in accordance

development with section 4.36 of the EP&A Act and Part 2.3 of the State Environmental Planning
State significant Development that is declared to be State significant infrastructure in accordance

infrastructure with section 5.12 of the EP&A Act and Part 2.3 of the State Environmental Planning
Three ports Port Botany, Port of Newcastle and Port Kembla
Abbreviations
ADG Code Australian Dangerous Goods Code for the Transport of Dangerous Goods by
Road and Rail approved by the National Transport Commission
CIV Capital investment value
CSSI Critical state significant infrastructure
EP&A Act Environmental Planning and Assessment Act 1979
EP&A Regulation Environmental Planning and Assessment Regulation 2021
EIS Environmental impact statement
EPI Environmental planning instrument
LEP Local environmental plan
M Million
PHA Preliminary hazard analysis
RSD Regionally significant development
SAP Special activation precinct
SEE Statement of environmental effects
SEPP State environmental planning policy
SSD State significant development
SSI State significant infrastructure
Standard Instrument Standard Instrument – Principal Local Environmental Plan 2006
Transport and State Environmental Planning Policy (Transport and Infrastructure) 2021
Infrastructure SEPP
1 Introduction
The transformation of the global energy sector presents a huge opportunity for Australia. Hydrogen
is emerging as a viable green renewable fuel, industrial feedstock and energy source with the
potential to become a significant growth industry in NSW.
The development of hydrogen will create economic growth and jobs and help NSW transition from
fossil fuels. It will increase our resilience in the face of climate change by providing more options for
renewable energy alternatives. Consequently, it will support the NSW Government’s Net Zero Plan
and commitment to achieve net zero emissions by 2050.
In October 2021, the NSW Government released the NSW Hydrogen Strategy. The strategy aims to
support investment and lower hydrogen production costs to enable the rapid expansion of a new
hydrogen industry. This guideline has been prepared to support the implementation of the strategy
(see Action 21).
1.1 Purpose and objectives

The purpose of this guideline is to assist industry, regulators, and the community in understanding
hydrogen development and related supply chain activities under the NSW planning framework.
Hydrogen development is not explicitly defined under the NSW planning system. However, it can be
categorised under existing land uses.
This guideline will help applicants and consent authorities identify:
• how hydrogen development could be characterised
• whether a proposed development is permissible
• what planning pathways are available.
It also contains broad guidance on site selection, cumulative impacts and key assessment issues to
consider when preparing a development application under Part 4 of the Environmental Planning and
Assessment Act 1979 (EP&A Act) or an application to carry out an activity under Part 5 of the Act.
The Department of Planning and Environment (the department) is undertaking additional work to
identify how the planning framework can be improved to support the safe and efficient
development of the hydrogen industry. This guideline will be updated as this work progresses and
the industry matures.
While the guideline aims to provide certainty about the planning system and the characterisation of
hydrogen development and activities, each development application or application to carry out an
activity is unique and individual circumstances may vary.
Consequently, this guideline should not be relied upon as a substitute for legal advice, and
applicants and proponents are encouraged to seek their own legal and planning advice in relation to
proposed hydrogen projects.
1.2 Application of the guideline
This guideline applies to:
• hydrogen produced by electrolysis
• the storage of hydrogen (except underground storage in natural, geological features)
• the distribution of hydrogen by pipeline, road, rail or ship
• hydrogen refuelling stations and
• the end use of hydrogen in electricity generation and as an industrial feedstock.
These elements of the hydrogen supply chain are explained in detail in section 2.1. This guideline
does not apply to forms of hydrogen production other than electrolysis.
2 About hydrogen
2.1 How hydrogen is used
Hydrogen is very versatile and can be used in many ways and across various applications. The
supply chain is outlined in Figure 1 and described below. It can be broadly separated into four main
components: production, storage, distribution and end-use. Hydrogen development may include one
or many parts of this supply chain.
Hydrogen production
Hydrogen gas can be produced through electrolysis, which uses an electric current to split water
into pure hydrogen and oxygen. The production process is generally powered by renewable energy
sources, including wind and solar.
Storage
Once produced, hydrogen can be stored as a compressed or liquified gas for later distribution or
use. There are hazards associated with the storage of compressed and liquified hydrogen gas, just
as with other gases, including the risk of fire and explosion. Hydrogen must also be cooled to very
low temperatures (around minus 253 degrees Celsius) to be stored as a liquefied gas.
Distribution
Hydrogen can be blended with natural gas (approximately 10% hydrogen) and distributed through
the existing gas network. Alternatively, it may be distributed through a dedicated and purpose-built
pipeline.
Compressed and liquified hydrogen can be transported by road, rail or ship and distributed to
domestic or international markets. Liquified hydrogen is generally preferred for longer distances as
a much greater mass of hydrogen can be transported in this way.
Hydrogen refuelling stations can be used to distribute and transfer hydrogen into freight and
private vehicles.
End use
Like fossil fuels, hydrogen can be used to generate electricity, combusted for industrial and
residential heating, and used for transport applications. Unlike fossil fuels, hydrogen does not
produce greenhouse gas emissions when burned. Therefore, it can help supplement other renewable
energy sources when they are low or intermittent.
Hydrogen can also be used as an industrial feedstock to produce materials and chemicals such as
ammonia, which is used in fertiliser production, and to replace coking coal in steel manufacturing.
Products made using hydrogen, including ammonia or liquid organic hydrocarbons, can be used to
store and transport energy over long distances, including overseas. Once exported, products such
as ammonia can be converted back to hydrogen and used in other ways.
New hydrogen fuel cell technology also allows hydrogen to be used to decarbonise the freight
industry and power public transport and private vehicles.
2.2 Hydrogen hubs, ports and special activation precincts

The NSW Hydrogen Strategy identifies hydrogen hubs and strategic areas for future hydrogen
development. These areas aim to create economies of scale by attracting private investment and
reducing production costs.
The strategy identifies Port Kembla and the Port of Newcastle as prospective hydrogen hubs. Both
ports have existing infrastructure, transportation links and export capabilities to facilitate the
development of the hydrogen industry. The ports also support a range of land uses including
ammonia storage or processing and steel production, which will benefit from nearby hydrogen
production and storage.
The NSW Hydrogen Strategy also identifies special activation precincts (SAPs) as suitable locations
to support the hydrogen hub model. SAPs are strategically planned areas in regional NSW that will
help drive investment in services and economic activity for regional communities.
2.3 Hazards and risks of hydrogen development

As with all fuels, there are hazards and risks associated with the production and use of hydrogen. It
is classified as a Class 2.1 flammable gas under the Australian Dangerous Goods Code (ADG Code)
and burns with a nearly invisible flame.
This means that hydrogen development will require controls to enable its safe use, including
adequate ventilation and systems to detect leaks and flames. Nevertheless, some of hydrogen’s
properties make it safer than other fuels. For example, it is non-toxic, much lighter than air and
dissipates rapidly when released or in the event of a leak.
The overall risk of hydrogen development will largely depend on how it is stored and handled, the
quantities stored on site, and its location relative to other land uses, particularly if they are sensitive
to or have the potential to increase the risks and hazards posed by hydrogen.
The hazards and risks of hydrogen are a key component in selecting a site for development and in
the assessment process. Section 4 provides more guidance on these issues.
Figure 1 : Hydrogen supply chain
3 NSW planning framework
The NSW planning framework consists of the:
• Environmental Planning and Assessment Act 1979 (EP&A Act)
• Environmental Planning and Assessment Regulation 2021 (EP&A Regulation)
• environmental planning instruments (including local environmental plans (LEPs) and state
environmental planning policies (SEPPs)), guidelines and development standards.
A key function of the NSW planning framework is to manage how we use land to avoid and minimise
conflicting uses and environmental impacts. The planning system does this by designating where
certain types of development may be carried out (for example, with or without consent) and setting
out an assessment process that is proportionate to the scale, importance, risk and impact of that
development.
Some minor development does not need approval at all (exempt development), while other
development that would have minimal environmental impact does not need an environmental
assessment if it meets specific development standards (complying development certificate). For
example, some development in special activation precincts is eligible for complying development
planning pathways relevant standards are met (see section 3.3).
Developments permitted with consent require a range of planning assessment and approvals
dependent on the scale of the development and its likely environmental impact. These
developments are regulated by Part 4 of the EP&A Act. Local development is the most common,
requiring a development application be submitted to and decided by the relevant local council.
Regionally significant development (RSD) is for development that has a higher capital investment
value and is of importance to the region. Regional planning panels provide an elevated and
separated development consent process for RSD.
State significant development (SSD) is a pathway reserved for development that is of the highest
capital investment value and potentially high environmental impacts. SSD is assessed by the
department and is decided either by the Minister (or departmental delegate) or the Independent
Planning Commission (where certain thresholds are met).
Developments permissible without consent (typically development or maintenance of critical
infrastructure by government agencies) do not require approval from a consent authority and can be
self-determined following an environmental assessment. Should this type of development be of a
large enough scale, it can become State significant infrastructure (SSI) or Critical SSI and the
Minister for Planning becomes the determining authority. This type of development is regulated by
Part 5 of the EP&A Act.
Further information on these planning pathways can be found on the department’s website and in
the department’s Community Guide to Planning. To determine if hydrogen development is
permissible and which planning pathway applies, applicants and planning authorities need to
consider:
• how the development is characterised, considering definitions in environmental planning
instruments (EPIs) (for example, general industry, heavy industry, chemical industry, gas
manufacturing and electricity generation)
• the dominant purpose or principal use of the development
• if the development is permitted with or without consent or is prohibited on the subject land
under the applicable EPIs
• the type and scale of the project (for example capital investment value (CIV) and storage
quantities).
The sections below give guidance on each of these steps.
Development in NSW ports

With future hydrogen development anticipated in NSW ports, it is important to recognise that the
development of port facilities is treated differently in the planning system depending on where it
occurs. Development within the declared Lease Areas of Port Botany, the Port of Newcastle and
Port Kembla (the three ports), is regulated differently from areas outside the Lease Areas, or in
other ports as outlined in the State Environmental Planning Policy (Transport and Infrastructure)
2021 (Transport and Infrastructure SEPP).
3.1 Characterising development

Characterising development involves the process of determining the purpose for which the
development is carried out to understand if it is a permissible land use. Development is
characterised based on its dominant or principal purpose. That is, the reason the development is
being undertaken or the end to which the development serves.
Development must be characterised according to land use terms defined in EPIs. Given that
hydrogen development is not explicitly defined in any legislation under the NSW planning system,
the most relevant land use terms should be used.
Table 1 provides a guide to how different parts of the hydrogen supply chain could be characterised
under the Standard Instrument – Principal Local Environmental Plan 2006 (Standard Instrument)
and relevant SEPPs. The definitions of each land use term are provided in full in Appendix A: Land
Use Definitions.
Development may involve many aspects of the hydrogen supply chain including production and
distribution. If the dominant purpose can be identified as just one of these uses, and the remaining
uses are ancillary, then the whole development can be taken to be for that dominant purpose. An
ancillary use is generally a use that is subordinate or subservient to the dominant purpose.
If a development involves one or more uses that serve their own purpose and are not closely related
or integrated, they are likely to be independent uses (depending on the facts and circumstances of
each case which will need to be individually assessed). In such circumstances, the development may
be considered mixed-use development and each independent use must be permissible.
Box 1 gives examples of a range of scenarios.
The department’s planning circular PS 21-008: Planning Circular – How to Characterise

Developments gives more information and outlines some general matters to consider when
characterising development.
Table 1. Characterising hydrogen development
Hydrogen supply chain Purpose of the development Land use term
Production of hydrogen using Heavy industry (includes hazardous

Production
electrolysis industry)
Heavy industrial storage establishment

Bulk storage of hydrogen as: (includes hazardous storage
Storage • gas or compressed gas establishment)
• liquified gas
Port facilities (outside Lease Area)
Port facilities (in Lease Area)
Service station
The transfer of hydrogen as a fuel Highway service centre
Distribution - refuelling source from a storage tank into a
Port facilities (outside Lease Area)
hydrogen-fuelled vehicle
Port facilities (in Lease Area)
Wharf or boating facilities
Freight transport facility
The distribution of hydrogen by pipe, Port facilities (outside Lease Area)

Distribution - other road, rail, air or sea for domestic use or Port facilities (in Lease Area)
export to international markets
Wharf or boating facilities
Rail infrastructure facilities
The use of hydrogen fuel for the

End Use - electricity Electricity generating works
generation of electricity
The use of hydrogen in industrial
End Use – industrial
processes such as ammonia and steel Heavy industry
feedstock
production
Box 1 | Characterisation examples
The following examples are provided as a guide only and are not intended as to
be a definitive or exhaustive characterisation of hydrogen development.
Dominant purpose
A development is proposed that will include an electrolysis plant to produce
hydrogen, and bulk hydrogen storage and loading facilities to allow offsite
distribution. The dominant purpose for this development would be the
hydrogen production facility, as the storage and distribution would likely be
ancillary to and support hydrogen production on site.
Dominant purpose
A development is proposed that will include an electrolysis plant to produce
hydrogen, and a hydrogen refuelling station that will use the hydrogen
produced on site to refuel vehicles. The dominant purpose for this development
would likely be the hydrogen production facility, as the refuelling station would
be ancillary to and support hydrogen production on site.
Ancillary use
A development is proposed that will include a hydrogen production facility with
a battery storage system which will store green energy from the transmission
network. As the battery storage would only be used to power the electrolysis
plant and not for commercial storage or supply of energy to the grid, it could be
considered an ancillary use subservient to the dominant purpose of hydrogen
production.
Mixed use
A development is proposed that will include a hydrogen electrolysis plant and a
solar farm that will export energy to the grid but also power on-site hydrogen
production. In this instance, the solar farm and the hydrogen production could
both serve their own purposes and be considered independent uses. As such,
the development could be considered mixed use. Therefore, both the solar farm
and hydrogen production facility would need to be permissible with consent on
the land under the relevant EPI 1.
1 Development consent may be granted for an SSD project even if the development is partly prohibited (section 4.38(3) of the
Environmental Planning and Assessment Act 1979)
3.2 Permissibility
Once a development has been characterised, the relevant EPIs should be used to determine if the
proposed development is permissible and if planning consent or approval is required. Table 2
summarises permissible uses for different zones under the Standard Instrument and relevant SEPPs
including the Transport and Infrastructure SEPP and the State Environmental Planning Policy
(Industry and Employment) 2021.
All LEPs must be prepared in accordance with the Standard Instrument. However, an LEP may
afford additional permissibility in some circumstances and consequently vary from the summary in
Table 2. Consequently, applicants should check the applicable LEP and other applicable SEPPs on
the NSW Legislation website for any variations from the Standard Instrument.
Table 2. Permissibility of hydrogen development
Characterisation Permissibility
Permissible with consent in:

Heavy industries
• E5 and IN3 zones under the Standard Instrument 2
(Includes hazardous industry)
• IN3 and SP1 zones under the Transport and Infrastructure SEPP 3
Heavy industrial storage Permissible with consent in:
establishment • E5 and IN3 zones under the Standard Instrument2
(Includes hazardous storage • SP1 zone under the Transport and Infrastructure SEPP3
establishments)
• W3 zone under the Standard Instrument2
• unzoned land or in a prescribed zone (B4, B8, IN1, IN3, IN4, SP1, SP2,
SP3, RE1, W2, W3) by any person if it’s the erection or use of a structure
within an existing port facility not directly related to the operation of the
port 4
• IN3 and SP1 zones within the three ports under the Transport and
Port facilities – located Infrastructure SEPP3
outside port Lease Areas
Permissible without consent under the Transport and Infrastructure SEPP if:
• carried out by or on behalf of the Newcastle Port Corporation or
Transport for NSW in a prescribed zone (B4, B8, IN1, IN3, IN4, SP1, SP2,
SP3, RE1, W2, W3) 5 or on any land providing the development is directly
related to an existing port facility5
• by or on behalf of any other public authority in a prescribed zone (B4, B8,
IN1, IN3, IN4, SP1, SP2, SP3, RE1, W2, W3) 5
2 Land Use Table, Part 2 of the Standard Instrument (Local Environmental Plans) Order 2006
3
Land Use Table, Part 5.2, of the State Environmental Planning Policy (Transport and Infrastructure) 2021
4 Section 2.78 and 2.81, Division 13, of the State Environmental Planning Policy (Transport and Infrastructure) 2021
5 Section 2.78 and 2.80, Division 13, of the State Environmental Planning Policy (Transport and Infrastructure) 2021

• IN3 and SP1 zones under the Transport and Infrastructure SEPP3
• IN1, IN3, SP1 or RE1 zones if carried out by or on behalf of a public
Port facilities – located in port
authority and has a CIV of $100 million (M) or less 6
Lease Areas
Permissible without consent in IN1, IN3, SP1 or RE1 zones if carried out by or
on behalf of a public authority and has a CIV of more than $100 M 7
Freight transport facilities • E4, E5, IN1 and IN3 zones under the Standard Instrument2
• IN1, IN3 and SP1 zones under the Transport and Infrastructure SEPP3
• W3 zone under the Standard Instrument2
• SP1 zone under the Transport and Infrastructure SEPP3
• IN1, IN3, SP1 or RE1 zones if carried out by or on behalf of a public
authority and has a CIV of $100M or less6
Wharf or boating facilities Permissible without consent:

• in IN1, IN3, SP1 or RE1 zones if carried out by or on behalf of a public
authority and has a CIV of more than $100M7
• on any land (not including land reserved under the National Parks and
Wildlife Act 1974 unless by exception) if by or on behalf of a public
authority under the Transport and Infrastructure SEPP 8
Permissible with consent by any person in a prescribed zone (E4, E5, IN1,
IN2, IN3, SP1 and SP2) under the Transport and Infrastructure SEPP if a rail
freight terminal, siding or intermodal facility 9
Rail infrastructure facilities
Permissible without consent on any land (not including land reserved under
the National Parks and Wildlife Act 1974 unless by exception) if carried out
by or on behalf of a public authority 10
• E1, E3 and B2 zones under the Standard Instrument2
• SP1 zone under the Transport and Infrastructure SEPP3

Service station • IN1 zone for land to which the State Environmental Planning Policy
(Industry and Employment) 2021 applies 11
• Enterprise, Agribusiness and Mixed Use zones in the Western Sydney
Aerotropolis 12
6 Section 5.16 of the State Environmental Planning Policy (Transport and Infrastructure) 2021
7 Section 5.16 of the State Environmental Planning Policy (Transport and Infrastructure) 2021
8 Section 2.80, Division 13, of the State Environmental Planning Policy (Transport and Infrastructure) 2021
10
Section 2.92, Division 13, of the State Environmental Planning Policy (Transport and Infrastructure) 2021
11 Section 2.10, Chapter 2, of the State Environmental Planning Policy (Industry and Employment) 2021
12 Land Use Table, Chapter 4, of the State Environmental Planning Policy (Western Parkland City) 2021
Permissible with consent in a road corridor for a freeway, main road or

Highway service centre tollway under the Transport and Infrastructure SEPP 13
Enterprise and Agribusiness zones in the Western Sydney Aerotropolis12

• on any land for electricity generation using waves, tides or aquatic
thermals as a relevant fuel source14
Electricity generating works
• prescribed non-residential use zone (RU1, RU2, RU3, RU4, E4, E5, IN1, IN2,
IN3, IN4, SP1, SP2 and W4) in the Transport and Infrastructure SEPP 14
• SP1 zones in the three ports under the Transport and Infrastructure SEPP3
3.3 Planning pathways

Once a development has been characterised and its permissibility established, it can then be
regulated by and assessed through one of several planning pathways within the NSW planning
framework. Tables 3 to 10 outline the relevant planning pathways for the classifications established
in section 3.2. These tables focus on hydrogen development and do not specifically address the
thresholds and triggers for other derivatives such as ammonia, methanol or steel production.
Table 3. Planning pathways for hydrogen development that is a heavy industry
Heavy industry pathway Trigger or threshold
Local development If permissible with consent and none of the below
RSD More than $30M CIV 15

More than $30M CIV fuel, gas or inorganic fertiliser manufacturing 16
More than 50 tonnes hydrogen present (major hazard facility)16
SSD If carried out on land in Lease Area or unzoned land in three ports that is
permissible with consent and has either a CIV greater than $100m or is
designated development 17
More than $30M CIV in the Western Sydney Aerotropolis 18

Development that would be an activity for which the proponent would be the
SSI or Critical SSI determining authority and would require an EIS 19
If the activity is, or is on land, declared SSI or CSSI under a SEPP
13 Section 2.117, Subdivision 2, Division 17, of the State Environmental Planning Policy (Transport and Infrastructure) 2021
15 Section 2, Schedule 6 of the State Environmental Planning Policy (Planning Systems) 2021
Section 10, Schedule 1 of the State Environmental Planning Policy (Planning Systems) 2021 and Schedule 15 of the Work Health and
16
Safety Regulation 2017

17
Section 5.27, Chapter 5 of the State Environmental Planning Policy (Transport and Infrastructure) 2021
Table 4. Planning pathways for hydrogen development that is a hazardous storage establishment
Hazardous storage establishment
Trigger or threshold
pathway
RSD More than $30M CIV15
More than $30M CIV with gas storage or chemical storage16
More than 50 tonnes hydrogen present (major hazards facility)16
If carried out on land in Lease Area or unzoned land in three ports that
SSD is permissible with consent and has either a CIV greater than $100m or
is designated development (except for rail freight terminals and
shipping facilities)17
More than $30M CIV in the Western Sydney Aerotropolis18
Development that would be an activity for which the proponent would

SSI or Critical SSI be the determining authority and would require an EIS19
Table 5. Planning pathways for hydrogen development that is a freight transport facility
Freight transport facility pathway Trigger or threshold

SSD
Table 6. Planning pathways for hydrogen development that is an electricity generating work
Electricity generating works
Trigger or threshold
pathway
RSD More than $5M CIV 20
More than $30M CIV for electricity generation or heat 21
More than $10M if environmentally sensitive area of State

SSD
significance21

Development that would be an activity for which the proponent would
SSI or Critical SSI be the determining authority and would require an EIS19
Table 7. Planning pathways for hydrogen development a service station or highway service centre
Service station and highway Trigger or threshold

service centre pathway

More than $30M gas or chemical storage16
More than 50 tonnes hydrogen present (major hazards facility) 16
permissible with consent and has either a CIV greater than $100M or is
designated development17
Development that would be an activity for which the proponent would be

SSI or Critical SSI the determining authority and would require an EIS19
Table 8. Planning pathways for hydrogen development that is a wharf or boating facilities
Wharf or boating Trigger or threshold

facility pathway

More than $30m CIV (port facilities and wharf or boating facilities) 22
permissible with consent and has either a CIV greater than $100M or is
designated development (except for rail freight terminals and shipping
facilities)17
If carried out on land in Lease Area or unzoned land in three ports that is
permissible without consent and is undertaken by or on behalf of a public
SSI or Critical SSI authority with a CIV greater than $100M 23
More than $30M CIV and carried out by or on behalf of a public authority (does
not apply in Lease Areas or unzoned land in three ports) 24
22
Section 18, Schedule 1 of the State Environmental Planning Policy (Planning Systems) 2021
23 Section 5.28, Chapter 5 of the State Environmental Planning Policy (Transport and Infrastructure) 2021
Table 9. Planning pathways for hydrogen development that is a port facility
Port facility pathway Trigger or threshold

Exempt development Change of use in three ports Lease Areas where standards are met 25
More than $30M CIV (port facilities and wharf or boating facilities)22

permissible with consent and has either a CIV greater than $100m or is designated
development (except for rail freight terminals and shipping facilities)17
If carried out on land in Lease Area or unzoned land in three ports that is
permissible without consent and is undertaken by or on behalf of a public authority
with a CIV greater than $100M23
More than $30M CIV and carried out by or on behalf of a public authority (does not
SSI or Critical SSI apply in Lease Areas or unzoned land in three ports)24
Development for which the proponent would be the determining authority and
would require an EIS
If declared SSI or CSSI under a SEPP
Table 10. Planning pathways for hydrogen development that is a rail infrastructure facility
Rail infrastructure Trigger or threshold

facility pathway

Construction/installation of railway tracks and associated infrastructure within the
Exempt development
three ports 26
Complying Erection of rail terminal facilities if it will not include handling of dangerous
development goods 27.
More than $30M railway freight terminal, sidings, and intermodal facilities 28
SSD More than 50 tonnes hydrogen present (major hazards facility)16

More than $50M for rail infrastructure carried out by or on behalf of ARTC 29
Development for which the proponent would be the determining authority and
SSI or Critical SSI would require an EIS
If declared SSI or CSSI under a SEPP
25 Section 21, Schedule 10, of the State Environmental Planning Policy (Transport and Infrastructure) 2021
26 Section 22, Schedule 10, of the State Environmental Planning Policy (Transport and Infrastructure) 2021
27
Section 17A, Schedule 11, of the State Environmental Planning Policy (Transport and Infrastructure) 2021
Ports
Certain development is complying development in NSW ports if it will have minimal environmental
impact and meets the criteria outlined in section 2.83 of the Transport and Infrastructure SEPP, or
in the case of the three ports, Part 5.3 and Schedule 11 of the SEPP.
However, for most hydrogen development, it is likely that only minor works such as pipelines,
electricity transmission, or access roads will be considered complying development. If these works
are ancillary to a hydrogen development that requires consent, they should generally be included in
the development application and not undertaken as complying development.
Special activation precincts

Many industrial and employment uses of land that usually require a development consent under the
current planning framework can be undertaken as complying development within SAPs.
SAPs including those in Wagga Wagga, Moree and Parkes have masterplans and delivery plans that
guide the location of industrial development and other land uses. While some hydrogen
development may be eligible for a streamlined planning process (complying development) in the
future, this will depend on the relevant standards set under the State Environmental Planning Policy
(Precincts – Regional) 2021 and the scope and scale of the proposed development.
An activation precinct certificate must be obtained from the Regional Growth Development
Corporation before a complying development certificate is issued. The requirement for an activation
precinct certificate is regulated under the EP&A Regulation. The activation precinct certificate
provides an assurance that a proposal is consistent with the relevant land-use table, master plan
and delivery plan.
For potentially hazardous development (see section 4.1), a preliminary hazards analysis (PHA) must
accompany the application for an activation precinct certificate. The Regional Growth Development
Corporation will engage with the Department of Planning and Environment to identify if the
development poses a low, medium or high risk.
If a proposed development is high risk, it will not qualify for complying development. In these cases,
consent must be obtained from the consent authority under Part 4 of the EP&A Act. Additionally,
major hazards facilities cannot be carried out as complying development.
Given the inherit risks associated with hydrogen, and the infancy of the industry, applicants are
encouraged to discuss their proposal with the department early to identify if it is likely to trigger a
high risk and consequently whether the complying development pathway is likely to be appropriate.
More information about development in SAPs is available on the department’s special activation
precincts webpage.
3.4 Environmental impact assessment
Consent authorities must consider the likely impacts of a development on the natural and built
environments, and social and economic impacts in a locality when considering whether to grant
consent to a development 30. Consequently, development that requires consent will generally need
to be accompanied by an environmental assessment in the form of either a statement of
environmental effects (SEE) or an EIS.
An SEE must accompany all development applications unless the development is either designated
development or SSD, in which case an EIS is required. Designated development refers to
developments that are high-impact or located in or near an environmentally sensitive area. The
thresholds for designated development are listed in Schedule 3 of the EP&A Regulation. Hydrogen
should be considered a chemical for the purposes of applying these thresholds.
An EIS must be prepared to support an application for SSI and CSSI.
The requirements for an SEE are outlined in the department’s Application Requirements. The
requirements for an EIS are outlined in section 190 of the EP&A Regulation and in the department’s
State Significant Development Guidelines – Preparing an EIS and State Significant Infrastructure
Guidelines – Preparing an EIS.
Applicants of designated development and SSD and proponents of SSI or CSSI must contact the
department to request the Planning Secretary’s Environmental Assessment Requirements. These
will outline the matters that must be addressed in the EIS.
Designated development in SAPs

Certain development within the Regional Enterprise Zone in the Parkes, Wagga Wagga or Moree
SAPs (such as chemical industrial facilities and works and chemical storage facilities) are not
considered designated development despite meeting the thresholds prescribed in the EP&A
Regulation 31.
4 Key assessment issues

This section outlines some of the key assessment issues that may arise for hydrogen development
and activities. Importantly, this is a guide and not intended to be an exhaustive list. Any assessment
must address the requirements of the relevant planning and or consent authority and be
proportionate to the scale and impacts of the individual development.
4.1 Hazards and risks

As hydrogen is a Class 2.1 flammable gas under the ADG Code, hydrogen development may
potentially be a “hazardous industry” for the purpose of the State Environmental Planning Policy
30 Section 4.15 of the Environmental Planning and Assessment Act 1979

31 Section 50, Schedule 3 of the Environmental Planning and Assessment Regulation 2021
(Resilience and Hazards) 2021 (Resilience and Hazards SEPP). If it does constitute a “potentially
hazardous industry” a preliminary hazard analysis (PHA) must be prepared and submitted with a
development application for hydrogen production, storage and use.
The Resilience and Hazards SEPP incorporates the provisions of the repealed State Environmental
Planning Policy No. 33 Hazardous and Offensive Development also known as SEPP 33. SEPP 33
guidelines dated January 2011 (Applying SEPP 33 Guidelines) continue to apply to potentially
hazardous or offensive industries identified under the Resilience and Hazards SEPP. These
guidelines set out the process and thresholds for determining if a PHA is required. For Class 2.1
Flammable Gases, including hydrogen, the requirement for a PHA generally depends on:
• the amount of gas being stored or handled
• the state in which it is stored
• its location from other land uses.
The requirement for a PHA starts in the following circumstances:
• 0.1 tonnes of pressurised gas would be located 15 metres from sensitive land uses (residential or
other more sensitive uses), or 10 metres from other land uses (commercial or industrial)
• 0.5 tonnes of liquified pressurised gas would be located 20 metres from sensitive land uses or 10
metres for other land uses.
Figures 6 and 7 within Appendix 4 of Applying SEPP 33 Guidelines should be used to determine
whether hydrogen development is potentially hazardous. Notwithstanding the Hazards and
Resilience SEPP may still apply in circumstances where the quantity of hydrogen or other
dangerous goods is below the risk screening thresholds in Appendix 4.
For example, this may be the case if the proposal includes storage of two incompatible materials
which would elevate the toxic or explosive risk of a proposal. Consequently, Appendix 3 of the
Applying SEPP 33 Guidelines should be used to determine if the proposal is considered a potentially
hazardous industry and activity even if the screening thresholds are met.
If a PHA is required, it must be prepared in accordance with the Hazardous Industry Planning
Advisory Paper No 4 – Risk Criteria for Land Use Planning.
More information about the hazards assessment framework in NSW can be found in the Planning
guidelines for hazardous development.
4.2 Site selection

Good site selection provides an opportunity to avoid and minimise negative impacts and risks of
development at the outset. A good site may result in a greater social licence to operate and minimal
impacts on the environment, surrounding land uses and the community.
As hydrogen development may be potentially hazardous, good site selection is imperative to help
avoid and minimise hazards and risks. There are many technical and commercial factors that need to
be considered when selecting a site for hydrogen development. These include:
• proximity to sensitive land uses, including residential
• the potential to sterilise the development potential of surrounding or adjacent land (for example
future residential development, expansion of port areas or uses)
• proximity to transport infrastructure
• development restrictions, including land use zoning
Applicants should carefully assess the suitability of the site in their development application and
outline how these considerations have been factored into site selection and design of the project.
4.3 Cumulative impacts

Cumulative impacts are the incremental impacts of the project, combined with impacts from other
developments. These impacts can be environmental, economic and social in nature.
When hydrogen activities are proposed in concentrated industrial areas, such as hydrogen hubs or
major ports, cumulative impacts can increase the risk profile of the development and the impacts
that may be experienced off-site. In these cases, the cumulative hazard and risk profiles of the
surrounding area must be fully quantified and understood.
The potential for and consequence of cumulative impacts must be incorporated into a PHA (if
required) and must consider other operating, approved and proposed industries and activities within
the locality. These might include other hydrogen-related development, fuel storage, chemical
manufacturing or other potentially hazardous development.
In the case of State significant development, applicants must assess the likely cumulative impacts
of the project at a strategic level and site-based level in accordance with the department’s
Cumulative Impact Assessment Guidelines for State Significant Projects (PDF 1,393 KB).
4.4 Other assessment issues

Other issues that may need to be assessed will depend on the scale and type of development being
proposed. These may include, but are not limited to:
• Water management – where water take is associated with the development, demonstration that
there is sufficient water available for the proposed operation, including identification of the
source(s) of water.
• Biodiversity – if the development would impact native vegetation, habitat of threatened species
or ecological communities an assessment must be undertaken in accordance with the
Biodiversity Conservation Act 2016.
• Air quality and noise – an assessment of any air quality or noise impacts including details of how
impacts associated with construction and operation would be minimised and managed.
• Heritage – an assessment of potential impacts on Aboriginal cultural heritage and non-
aboriginal heritage.
• Traffic and transport – consideration of impacts to the local and classified road network during
construction and operation and details of road upgrades and infrastructure works, if necessary.
• Waste – details and classification of any waste streams that would be generated (including
brine water as a by-product of hydrogen production) and details of storage, handling and
disposal.
• Contamination – a site contamination assessment in accordance with the Managing Land
Contamination Planning Guidelines: SEPP 55 – Remediation of Land (DUAP, 1998), including
characterisation of the nature and extent of any contamination on the site and surrounding area.
• Community and stakeholder engagement – for State significant development an engagement
strategy consistent with the department’s Undertaking Engagement Guidelines for State
Significant Projects.
Appendix A: Land use definitions
Development Definition
Heavy industry A building or place used to carry out an industrial activity that requires separation
from other development because of the nature of the processes involved, or the
Standard Instrument
materials used, stored or produced, and includes—
a) hazardous industry, or
b) offensive industry.
It may also involve the use of a hazardous storage establishment or offensive
storage establishment.
Hazardous industry A building or place used to carry out an industrial activity that would, when carried
out and when all measures proposed to reduce or minimise its impact on the locality
Standard Instrument
have been employed (including, for example, measures to isolate the activity from
existing or likely future development on other land in the locality), pose a significant
risk in the locality—
a) to human health, life or property, or
b) to the biophysical environment.
Heavy industrial A building or place used for the storage of goods, materials, plant or machinery for
storage commercial purposes and that requires separation from other development because
establishment of the nature of the processes involved, or the goods, materials, plant or machinery
stored, and includes any of the following—
Standard Instrument
a) a hazardous storage establishment,
b) a liquid fuel depot,
c) an offensive storage establishment
Hazardous storage A building or place that is used for the storage of goods, materials or products and
establishment that would, when in operation and when all measures proposed to reduce or
minimise its impact on the locality have been employed (including, for example,
Standard Instrument
measures to isolate the building or place from existing or likely future development
on other land in the locality), pose a significant risk in the locality—
a) to human health, life or property, or
b) (b) to the biophysical environment.
A facility used principally for the bulk handling of goods for transport by road, rail,
Freight transport air or sea, including any facility for the loading and unloading of vehicles, aircraft,
facility vessels or containers used to transport those goods and for the parking, holding,
servicing or repair of those vehicles, aircraft or vessels or for the engines or
Standard Instrument
carriages involved.
Port facilities Facilities on land in the Lease Area, or the Intertrade Industrial Park, used in
connection with the carrying of freight and persons by water from one port to
Chapter 5, Transport
another for business or commercial purposes, and includes any of the following—
and Infrastructure
a) facilities for the embarkation or disembarkation of passengers onto or from
SEPP
any vessels, including public ferry wharves,
b) facilities for the loading or unloading of freight onto or from vessels and
freight receival, processing, land transport and storage facilities,
c) wharves for commercial fishing operations,
d) refuelling, launching, berthing, mooring, storage or maintenance facilities
for any vessel,
e) sea walls or training walls,
f) administration and port operations buildings and facilities,
g) communication, security and safety facilities,
h) (h) utilities and services, road and rail infrastructure, pipelines and car
parks.
Port facilities Any of the following facilities at or in the vicinity of a designated port within the
meaning of section 47 of the Ports and Maritime Administration Act 1995—
Division 13,
a) facilities for the embarkation or disembarkation of passengers onto or from
Transport and
any vessels, including public ferry wharves,
Infrastructure SEPP
b) facilities for the loading or unloading of freight onto or from vessels and
Standard Instrument associated receival, land transport and storage facilities,
c) wharves for commercial fishing operations,
d) refuelling, launching, berthing, mooring, storage or maintenance facilities
for any vessel,
e) sea walls or training walls,
f) (f) administration buildings, communication, security and power supply
facilities, roads, rail lines, pipelines, fencing, lightning or car parks.
Service station A building or place used for the sale by retail of fuels and lubricants for motor
vehicles, whether or not the building or place is also used for any one or more of the
Standard Instrument
following—
a) the ancillary sale by retail of spare parts and accessories for motor vehicles,
b) the cleaning of motor vehicles,
c) installation of accessories,
d) inspecting, repairing and servicing of motor vehicles (other than body
building, panel beating, spray painting, or chassis restoration),
e) the ancillary retail selling or hiring of general merchandise or services or
both.
Highway service A building or place used to provide refreshments and vehicle services to highway
centre users. It may include any one or more of the following—
a) a restaurant or cafe,
Standard Instrument
b) take away food and drink premises,
c) service stations and facilities for emergency vehicle towing and repairs,
d) parking for vehicles,
e) rest areas and public amenities.
Electricity generating A building or place used for the purpose of making or generating electricity or
works electricity storage.
Standard Instrument
Wharf or boating A wharf or any of the following facilities associated with a wharf or boating that are
facilities not port facilities—
Standard Instrument (a) facilities for the embarkation or disembarkation of passengers onto or from any
vessels, including public ferry wharves,
(b) facilities for the loading or unloading of freight onto or from vessels and
associated receival, land transport and storage facilities,
(c) wharves for commercial fishing operations,
(d) refuelling, launching, berthing, mooring, storage or maintenance facilities for

any vessel,
(e) sea walls or training walls,
(f) administration buildings, communication, security and power supply facilities,

roads, rail lines, pipelines, fencing, lighting or car parks.
Rail infrastructure Includes—

facilities
(a) railway tracks, associated track structures, cuttings, drainage systems, fences,
Division 15, tunnels, ventilation shafts, emergency accessways, bridges, embankments, level
Transport and crossings and roads, pedestrian and cycleway facilities, and
Infrastructure SEPP
(b) signalling, train control, communication and security systems, and
(c) power supply (including overhead power supply) systems, and
(d) railway stations, station platforms and areas in a station complex that
commuters use to get access to the platforms, and
(e) public amenities for commuters, and
(f) associated public transport facilities for railway stations, and
(g) facilities for the assembly, maintenance and stabling of rolling stock, and
(h) facilities for the dismantling and stabling of rolling stock taken out of service,
and
(i) refuelling depots, garages, maintenance facilities and storage facilities that are
for the purposes of a railway, and
(j) railway workers’ facilities, and
(k) rail freight terminals, sidings and freight intermodal facilities, and
(l) buildings for or related to railway purposes,
but do not include buildings or works that are for residential, retail or business
purposes and unrelated to railway purposes.

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Department of Planning and Environment

Hydrogen Guideline | Hydrogen Guidelinea

Published by NSW Department of Planning and Environment

Characterisation The identification of various components of a development for the purposes of

Consent Development consent granted under Part 4 of the EP&A Act

Consent authority The consent authority for a development application

Department The NSW Department of Planning and Environment

Regionally significant Development that is declared to be Regionally significant development in

State significant Development that is declared to be State significant development in accordance

State significant Development that is declared to be State significant infrastructure in accordance

Three ports Port Botany, Port of Newcastle and Port Kembla

CIV Capital investment value

CSSI Critical state significant infrastructure

EP&A Act Environmental Planning and Assessment Act 1979

EP&A Regulation Environmental Planning and Assessment Regulation 2021

EIS Environmental impact statement

EPI Environmental planning instrument

LEP Local environmental plan

PHA Preliminary hazard analysis

RSD Regionally significant development

SAP Special activation precinct

SEE Statement of environmental effects

SEPP State environmental planning policy

SSD State significant development

SSI State significant infrastructure

Standard Instrument Standard Instrument – Principal Local Environmental Plan 2006

1.1 Purpose and objectives

2.2 Hydrogen hubs, ports and special activation precincts

2.3 Hazards and risks of hydrogen development

Development in NSW ports

3.1 Characterising development

The department’s planning circular PS 21-008: Planning Circular – How to Characterise

Hydrogen supply chain Purpose of the development Land use term

Production of hydrogen using Heavy industry (includes hazardous

Heavy industrial storage establishment

Freight transport facility

The distribution of hydrogen by pipe, Port facilities (outside Lease Area)

The use of hydrogen fuel for the

Environmental Planning and Assessment Act 1979)

Table 2. Permissibility of hydrogen development

Permissible with consent in:

Permissible with consent in:

Wharf or boating facilities Permissible without consent:

• SP1 zone under the Transport and Infrastructure SEPP3

Permissible with consent in a road corridor for a freeway, main road or

Enterprise and Agribusiness zones in the Western Sydney Aerotropolis12

3.3 Planning pathways

Table 3. Planning pathways for hydrogen development that is a heavy industry

Heavy industry pathway Trigger or threshold

Local development If permissible with consent and none of the below

RSD More than $30M CIV 15

More than 50 tonnes hydrogen present (major hazard facility)16

More than $30M CIV in the Western Sydney Aerotropolis 18

If the activity is, or is on land, declared SSI or CSSI under a SEPP

Safety Regulation 2017

More than 50 tonnes hydrogen present (major hazards facility)16

More than $30M CIV in the Western Sydney Aerotropolis18

Development that would be an activity for which the proponent would

If the activity is, or is on land, declared SSI or CSSI under a SEPP

Freight transport facility pathway Trigger or threshold

Local development If permissible with consent and none of the below

More than $10M if environmentally sensitive area of State

More than $30M CIV in the Western Sydney Aerotropolis18